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Compliance Standards Reference

Complete Guide to 30+ Compliance Standards Supported by SpecWeave Strategic Init

Strategic Init automatically detects compliance requirements based on your data types and geographic regions, helping you understand team, cost, and technical implications before you start building.


Quick Reference Table

StandardData TypeRegionTeam ImpactEst. Cost/Month
HIPAAHealthcare (PHI)USAuth, Data, DevSecOps$3,000+
HITRUSTHealthcareUSCISO, Security$5,000+
PCI-DSSPayment CardsGlobalPayments, Security$3,500+
GDPRPersonal DataEUPrivacy, DPO$500+
CCPAPersonal DataUS (CA)Privacy, Legal$200+
SOC 2Personal/FinancialGlobalDevSecOps, CISO (if >15 people)$1,500+
FedRAMPGovernmentUS FederalSecurity, Compliance$10,000+
FISMAGovernmentUS FederalCISO, Security$5,000+
FERPAStudent RecordsUSPrivacy$300+
COPPAChildren (<13)USPrivacy, Legal$500+

Healthcare Standards (8 Standards)

HIPAA (Health Insurance Portability and Accountability Act)

Regions: United States Data Types: Protected Health Information (PHI) - medical records, health data, patient information

When it applies:

  • Healthcare providers (hospitals, clinics, doctors)
  • Health insurance companies
  • Healthcare clearinghouses
  • Business associates handling PHI (EMR vendors, billing services)

Key Requirements:

  1. BAA (Business Associate Agreement) with all vendors handling PHI
  2. Encryption at rest and in transit (AES-256, TLS 1.2+)
  3. Access controls with MFA, role-based permissions
  4. Audit logging of all PHI access (who, what, when)
  5. Data breach notification within 60 days
  6. Patient rights: Access, amendment, accounting of disclosures

Team Impact:

  • Auth Team (1-2 engineers): MFA, RBAC, session management
  • Data Team (1-2 engineers): Encryption, backups, data retention
  • DevSecOps (1 engineer): Monitoring, audit logs, incident response

Cost Estimate: $3,000+/month minimum

  • Compliance tools: $500/month (audit logging, encryption key management)
  • BAAs with vendors: $200-$1,000/month (AWS, Twilio, SendGrid, etc.)
  • Security audits: $10,000-$50,000/year (annual)
  • HIPAA training: $1,000/year (required annually)

Serverless Alternative:

Use AWS (HIPAA-eligible services with BAA):
• Lambda + API Gateway (compute)
• RDS with encryption (database)
• S3 with encryption (storage)
• CloudTrail (audit logs)
• KMS (key management)

Savings: Easier compliance, AWS handles infrastructure security
Cost: Similar to traditional, but operational overhead reduced

HITRUST (Health Information Trust Alliance)

Regions: United States, Global Data Types: Healthcare, PHI

When it applies:

  • Organizations needing to demonstrate HIPAA compliance
  • Healthcare SaaS companies (EMR, telehealth, etc.)
  • Healthcare partners requiring HITRUST certification

Key Difference from HIPAA: HITRUST is a certification framework that proves HIPAA compliance through independent audit.

Requirements:

  • Everything from HIPAA, plus:
  • Annual HITRUST CSF assessment
  • Independent third-party audit
  • Continuous monitoring and validation

Cost Estimate: $5,000+/month

  • Initial assessment: $50,000-$150,000 (one-time)
  • Annual re-certification: $30,000-$80,000/year
  • Ongoing compliance: $2,000-$5,000/month

Payment Standards (6 Standards)

PCI-DSS (Payment Card Industry Data Security Standard)

Regions: Global Data Types: Credit card data (PAN, CVV, expiration date)

When it applies:

  • E-commerce sites accepting credit cards
  • Payment processors
  • Point-of-sale systems
  • Any application storing/processing card data

Key Requirements:

  1. Never store CVV or full magnetic stripe data
  2. Tokenization of card data (use payment gateway tokens)
  3. Network segmentation (cardholder data environment isolated)
  4. Quarterly vulnerability scans (ASV approved vendor)
  5. Annual penetration testing
  6. Strict access controls with MFA

Levels:

  • Level 1: 6M+ transactions/year - Annual on-site audit required
  • Level 2: 1M-6M transactions/year - Annual self-assessment
  • Level 3: 20K-1M transactions/year - Annual self-assessment
  • Level 4: <20K transactions/year - Annual self-assessment

Team Impact:

  • Payments Team (1-2 engineers): Tokenization, gateway integration
  • DevSecOps (1 engineer): Network segmentation, vulnerability scans
  • Security auditor: Annual compliance validation

Cost Estimate: $3,500+/month

  • Level 4 (most common): $2,000-$5,000/year compliance
  • Level 1: $50,000-$200,000/year compliance (audits, pen tests)
  • Vulnerability scans: $200/month (quarterly)
  • Tokenization service: $0.10-$0.30 per transaction

Serverless Alternative (STRONGLY RECOMMENDED):

Use Stripe, PayPal, or Square:
• They handle PCI compliance entirely
• You never touch raw card data
• Tokens only (no PCI scope)
• Cost: 2.9% + $0.30 per transaction

Savings: $3,500/month compliance cost → $0
Trade-off: Transaction fees instead of fixed cost
Recommendation: Use payment gateway unless processing 100K+ transactions/month

PSD2 (Payment Services Directive 2)

Regions: European Union Data Types: Payment data, banking information

When it applies:

  • Payment service providers in EU
  • Banks offering APIs
  • Fintech apps accessing bank accounts

Key Requirements:

  • Strong Customer Authentication (SCA) - 2FA for payments
  • Secure API communication
  • Customer consent management
  • Transaction monitoring

Cost Estimate: $1,000+/month (EU-specific compliance consulting)


Privacy Standards (10 Standards)

GDPR (General Data Protection Regulation)

Regions: European Union (applies to ANY company with EU users) Data Types: Personal data (names, emails, IP addresses, behavioral data)

When it applies:

  • ANY website/app with users in the EU
  • Even if your company is US-based, if you have EU customers → GDPR applies

Key Requirements:

  1. Consent management: Explicit opt-in (no pre-checked boxes)
  2. Right to access: Users can download their data
  3. Right to deletion: Users can request deletion ("right to be forgotten")
  4. Right to portability: Users can move data to competitors
  5. Data breach notification: Within 72 hours to authorities
  6. Privacy by design: Default settings must be privacy-protective
  7. DPO (Data Protection Officer): Required if processing large amounts of data

Team Impact:

  • Privacy Engineer (1 engineer): Consent, data access/deletion APIs
  • DPO (1 person or external consultant): Compliance oversight
  • Legal: Privacy policy, terms of service

Cost Estimate: $500+/month

  • DPO: $500-$2,000/month (external consultant) or $100K/year (full-time)
  • Consent management: $200/month (OneTrust, Cookiebot)
  • Legal review: $5,000-$15,000 (one-time for privacy policy)

Penalties: Up to €20M or 4% of global revenue, whichever is higher (serious violations)


CCPA (California Consumer Privacy Act)

Regions: California, United States Data Types: Personal information (similar to GDPR but California only)

When it applies:

  • Companies doing business in California with:
    • $25M+ annual revenue, OR
    • 50,000+ consumers/households/devices, OR
    • 50%+ revenue from selling personal info

Key Requirements:

  • "Do Not Sell My Personal Information" opt-out
  • Privacy policy disclosure
  • Data access and deletion rights
  • No discrimination for exercising privacy rights

Cost Estimate: $200+/month

  • Privacy policy updates: $2,000-$5,000 (one-time)
  • Opt-out mechanism: $100/month (consent management)
  • Legal review: $3,000-$10,000

Government Standards (7 Standards)

FedRAMP (Federal Risk and Authorization Management Program)

Regions: United States (Federal Government) Data Types: Government data (CUI - Controlled Unclassified Information)

When it applies:

  • Cloud service providers selling to federal agencies
  • SaaS products used by government

Levels:

  • Low: Non-sensitive data
  • Moderate: Most common (e.g., email, collaboration tools)
  • High: National security data

Key Requirements:

  • 325+ security controls
  • Continuous monitoring
  • Third-party assessment
  • Annual re-authorization

Cost Estimate: $10,000+/month

  • Initial authorization: $250,000-$1,500,000 (18-24 months)
  • Ongoing monitoring: $10,000-$30,000/month
  • Annual assessment: $100,000-$300,000

Team Impact: Requires dedicated CISO and Security Team (3-5 people)


FISMA (Federal Information Security Management Act)

Regions: United States (Federal Government) Data Types: Federal information systems

Similar to FedRAMP but for government-owned systems (not cloud services).

Cost Estimate: $5,000+/month (security controls, continuous monitoring)


CMMC (Cybersecurity Maturity Model Certification)

Regions: United States (Department of Defense) Data Types: CUI (Controlled Unclassified Information), FCI (Federal Contract Information)

When it applies:

  • Defense contractors
  • Subcontractors working on DOD projects

Levels:

  • Level 1: Basic cybersecurity (17 practices)
  • Level 2: Intermediate (110 practices) - Most common
  • Level 3: Advanced (130 practices)

Cost Estimate: $5,000+/month for Level 2

  • Initial assessment: $30,000-$100,000
  • Ongoing compliance: $3,000-$10,000/month

Education Standards (2 Standards)

FERPA (Family Educational Rights and Privacy Act)

Regions: United States Data Types: Student education records

When it applies:

  • Schools, colleges, universities
  • EdTech companies with student data

Key Requirements:

  • Parental consent for disclosure
  • Student access to their records
  • Secure storage of education records

Cost Estimate: $300+/month (privacy controls, access management)


COPPA (Children's Online Privacy Protection Act)

Regions: United States Data Types: Data from children under 13

When it applies:

  • Apps/websites directed at children <13
  • Apps with actual knowledge of users <13

Key Requirements:

  • Parental consent before collecting data
  • Clear privacy policy
  • Data minimization (collect only what's needed)
  • No targeted advertising to children

Cost Estimate: $500+/month

  • Parental consent mechanism: $500-$2,000/month
  • Legal review: $5,000-$15,000
  • Age verification: $200/month

Financial Standards (3 Standards)

GLBA (Gramm-Leach-Bliley Act)

Regions: United States Data Types: Financial information (banks, insurance, investments)

When it applies:

  • Banks, credit unions
  • Insurance companies
  • Investment firms

Key Requirements:

  • Privacy notices
  • Opt-out for information sharing
  • Safeguards Rule (protect customer data)

Cost Estimate: $1,000+/month


SOC 2 (Service Organization Control 2)

Regions: Global Data Types: Personal data, financial data, any sensitive data

When it applies:

  • SaaS companies
  • Cloud service providers
  • Any company handling customer data that needs to prove security

Types:

  • Type I: Security controls exist (point-in-time)
  • Type II: Security controls work over time (6-12 months)

Trust Service Criteria:

  1. Security: Protection against unauthorized access
  2. Availability: System uptime and performance
  3. Processing Integrity: Data processing is complete and accurate
  4. Confidentiality: Confidential data is protected
  5. Privacy: Personal information is handled properly

Team Impact:

  • DevSecOps (1 engineer): Monitoring, logging, incident response
  • CISO (if >15 people): Security leadership
  • Auditor: Annual SOC 2 audit

Cost Estimate: $1,500+/month

  • Initial audit: $20,000-$100,000
  • Annual re-audit: $15,000-$50,000
  • Compliance tools: $500-$2,000/month (logging, monitoring)

Infrastructure Standards (1 Standard)

NERC-CIP (North American Electric Reliability Corporation - Critical Infrastructure Protection)

Regions: United States, Canada, Mexico Data Types: Critical infrastructure (electric grid)

When it applies:

  • Power generation facilities
  • Transmission operators
  • Control system vendors

Cost Estimate: $5,000+/month (specialized compliance consulting)


How Strategic Init Uses This Data

Detection Flow

  1. User answers: "What data types will you handle?"

    • ☑ Personal user data
    • ☑ Healthcare records
  2. User answers: "Where are your users?"

    • ☑ United States
    • ☑ European Union
  3. Strategic Init detects:

    Personal data + EU → GDPR
    Personal data + US (California likely) → CCPA
    Healthcare + US → HIPAA, HITRUST
  4. Strategic Init calculates impact:

    Team Requirements:
    • Auth Team (MFA, RBAC)
    • Data Team (Encryption, retention)
    • Privacy Engineer (GDPR compliance)
    • DPO (GDPR requirement)

    Cost Impact: $4,000+/month
    • HIPAA compliance: $3,000/month
    • GDPR (DPO + tools): $700/month
    • CCPA tools: $200/month
  5. Strategic Init recommends architecture:

    Traditional architecture (not serverless)
    Rationale: HIPAA requires BAA, dedicated VPC, audit trails
    → Use AWS with HIPAA-eligible services

Common Misconceptions

"I need PCI-DSS because I accept payments"

Wrong! If you use Stripe, PayPal, or Square, you do NOT need PCI-DSS compliance. They handle compliance; you only deal with tokens.

"GDPR only applies to EU companies"

Wrong! GDPR applies to ANY company with EU users, regardless of where the company is located.

"HIPAA requires encryption"

Partially wrong! HIPAA requires encryption in transit (TLS 1.2+) but encryption at rest is "addressable" (recommended but not required). However, most auditors expect both.

"SOC 2 is required for SaaS"

Wrong! SOC 2 is voluntary but enterprise customers often require it before signing contracts.


Compliance Cost Calculator

Use this formula to estimate compliance costs:

Monthly Cost = Base + Per-Standard + Team

Base = $500 (compliance tools, monitoring)

Per-Standard:
• HIPAA = $3,000
• GDPR = $500
• PCI-DSS = $3,500 (or $0 if using payment gateway)
• SOC 2 = $1,500
• FedRAMP = $10,000

Team (if compliance requires):
• Auth Team = $200,000/year salary
• DPO = $500-$2,000/month (consultant) or $100K/year
• CISO = $150,000-$300,000/year (only if >15 people + SOC 2)

Example: Healthcare SaaS in US + EU

Base: $500
HIPAA: $3,000
GDPR: $500
Total: $4,000/month

Team: Auth (2 engineers), Data (1 engineer), DPO (consultant)
Total: ~$25K/month (salaries + consultant)

Learn More


Need help understanding compliance requirements? Run specweave init and answer the data type questions - Strategic Init will provide personalized recommendations!